When Cana Whitted and her husband traveled from Portland, Ore., to Istanbul for their honeymoon last year, they took advantage of a novel employee perk. Whitted, a recruiting manager at the employee-search firm IsoTalent, tapped into her company’s partnership with Dónde, a platform that enables employers to offer travel as an employee benefit.
As she planned the trip, Whitted’s employer matched up to $50 in savings she put into her Dónde account each month, then helped with travel advice in picking their destination and setting up side trips, she said. “I ended up being able to book a couple of hikes that I wouldn’t have found on my own, some experiences in the center of the country.”
Just as important was the message from her company in providing this benefit. “It feels like you’re empowered to take some paid time off,” Whitted said. "You get to see the world, and they just make it a sweet process.”
At a time when demand for leisure travel is booming, and many employees are suffering burnout after years of workplace disruption, a notable number of companies are finding travel-as-a-benefit to be an attractive new way to boost worker satisfaction and retention. Travel companies were natural candidates to lead the way–notably Airbnb, Expedia and United Airlines–but tech companies have joined the trend as well, including BambooHR and Evernote.
“Anything an employer can do, now in particular, to be creative in terms of benefits to employees is significant,” says Rick Grimaldi, an HR lawyer and author of Flex: A Leader’s Guide to Staying Nimble and Mastering Transformative Change in the Workplace. Today’s workers, especially younger ones, Grimaldi said, “come to the workplace with a very different set of expectations.” Among those are not only fair pay and a sense of purpose, but also an acknowledgement of the need for time off and rejuvenation. “Mental health is a huge issue in the workplace, particularly post-Covid,” Grimaldi said. “So to the extent that an employer is concerned about employee well-being–as well they should–that is now part of the social contract.”
Employers have more than altruistic reasons to pursue such benefits. The boost to employee well-being and productivity that comes with paid time off and travel has been well-documented. So have the corporate cost savings associated with retention and strong recruitment capabilities. Many workers now rank personal and career growth as being as important to them as their salaries, said Grimaldi, so they may look at the offer of travel in a benefits package as “an opportunity for me to grow socially and intellectually.”
One more factor stimulating travel-as-a-benefit is the growth of so-called “bleisure travel,” in which workers combine their business trips with leisure time. The Wall Street Journal reported last year that nearly half of the ticket revenue at American Airlines, for example, is now coming from people on bleisure trips, “and those customers are spending nearly as much as what corporate travelers once shelled out” for business-only travel before the pandemic.
The marketing platform Conductor is one believer in bleisure. The company permits its employees to work two months out of the year from any location in the world. The only catch is that workers must maintain business hours aligned with those of the company’s New York headquarters.
Outsourcing the Programs
Given that busy HR leaders may not want to administer these programs themselves, startup platforms like Dónde can offer one-stop-shopping for both funding and planning employee getaways. One feature establishes a company-matched, travel-savings program, which works like a 401(k), but for travel. Dónde also aims to make travel-shopping less stressful and cheaper for employees through a marketplace available on its own branded app. Employees set travel goals on the app and monitor financial progress toward them. They can also set up recurring deposits into their travel savings accounts and see company contributions. When workers are ready to vacation, getaways can be booked and scheduled on the app, too.
“It’s a way for companies to reward their employees with time off and vacation, and it can look like anything they want it to look like,” said Rilee Buttars, Dónde’s CEO and co-founder. “We believe that the employer and employee relationship will be stronger if the employee is able to take time off and feel like they can have the work/life balance that is so often promised in interviews. The company will get a better employee because they enabled that to happen.”’
One of Dónde’s partner companies is Zartico, a “destination operating system” designed to help grow tourism economies. Dónde provides Zartico with employee-rewards programs that include worker-recognition events and employee contests. To drum up attention, Zartico’s chief people officer, Leslie Hooper, launched an internal wiki page and paid employees to craft posts for it, with a couple of workers earning as much as $1,000 each in travel benefits in their Dondé accounts.
“We are in the travel and tourism space, so people who work for us–even though they’re data scientists or engineers–they’re passionate about travel and that’s one of the qualities that speaks to them for working at Zartico,” said Hooper. “To have that as an added benefit is very, very attractive to them.”
A Range of Options
The features of such packages vary widely. Some, like Calendly and Evernote, simply offer workers $1,000 yearly stipends for travel expenses, such as plane tickets, vacation activities, dining allowances and even passport fees. Travel stipends provided at other companies can run upward of $7,000 per year. Airbnb gives its employees $2,000 a year in platform travel credits, while United Airlines allows its workers to travel for free, on standby, on an unlimited basis.
HR and benefits leaders who would like to incorporate travel into their company’s benefits package will need to devote some thought to how they might sell the idea to upper leadership. Grimaldi says the C-suite might be a little afraid to offer travel as a benefit, especially at a time when efficiency and austerity are corporate watchwords.
Grimaldi suggests that HR leaders conduct research and accrue data that quantifies, to some degree, the positive impact that paid employee travel might have on productivity, retention and recruitment, among other considerations. “Show statistical data as well as anecdotal information where it’s been successful,” Grimaldi said. He also suggests framing travel-as-a-benefit as a cousin of the more-familiar sabbatical arrangement to help communicate its upside. “Then, develop a plan that works for your company,” he said.
One of the goals of benefits leaders is to make sure workers understand their options and how to navigate them. That has been a challenge as travel-as-a-benefit gets off the ground. A few years ago, New York City resident Debbie Martinez was working for a tech company that offered subsidized PTO travel benefits and bleisure options to employees, but many co-workers were unaware of them. “It was like something that was a rumor,” she recalls. The company’s people managers didn’t understand how to deliver the benefits. “There was a whole mixup with HR,” Martinez said. “I didn’t really know how to make it work and no one gave me straight answers.”
Once she figured out the system, it proved to be a boon. After logging eight days of work in Florida, she added 12 days for vacation. Other destinations included Hawaii and the Sundance Film Festival in Utah, both of which included subsidies paid by her employer. “It’s extremely beneficial,” Martinez said of the benefit perk. “I wish more companies would offer it, and sometimes just a change in location while you work is all you need. It was a great reset.”
Since her early experience, travel programs have sought to become more user-friendly. Jessica Lim Sorenson, a Utah-based user-experience designer, used Dónde to book her honeymoon in Hawaii last year, partly paid by her employer at the time, Lendio. “You’re getting free money out of it. All you have to do is use it,” she said. “It kind of takes your traditional benefits and gives it a nice twist. It was reassuring to know I can take PTO and I don’t have to feel pressure to always be working all the time.”
Michael Stahl is a New York City-based freelance journalist, writer, and editor. You can read more of his work at MichaelStahlWrites.com, follow him on Twitter @MichaelRStahl, and order his first book, the autobiography of Major League Baseball pitcher Bartolo Colón, at Abrams Books.
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